NOVELTY - Method (M1) for generating methane from carbonaceous formation, involves (a) forming a fluid channel through the formation, establishing an underground bioreactor in the channel, establishing an aboveground bioreactor connected to the channel, passing nutrient fluid through the underground bioreactor into the aboveground bioreactor, controlling environmental conditions in the underground bioreactor to promote continual conversion of the formation into the feedstock and withdrawing methane from the aboveground bioreactor.    USE - The method (M1) is useful for generating methane from carbonaceous formation. The system is useful for generating methane from a carbonaceous formation (all claimed).    DETAILED DESCRIPTION - Method (M1) for generating methane from carbonaceous formation, involves (a) forming a fluid channel through the formation, establishing an underground bioreactor in the channel, establishing an aboveground bioreactor connected to the channel, passing nutrient fluid through the underground bioreactor into the aboveground bioreactor to provide a feedstock for the aboveground bioreactor, controlling environmental conditions in the underground bioreactor to promote continual conversion of the formation into the feedstock and withdrawing methane from the aboveground bioreactor, or (b) establishing a first bioreactor inside the formation, establishing a second bioreactor outside the formation, passing nutrient fluid into the first bioreactor, controlling environmental conditions in the first bioreactor to promote continuous conversion of the formation to a feedstock, transferring the feedstock from the first bioreactor to the second bioreactor, and withdrawing methane from the second bioreactor. INDEPENDENT CLAIMS are included for the following:    (1) system comprises fluid channel through the formation, underground bioreactor in the channel, an aboveground bioreactor connected to the channel, unit for control of the environmental conditions in the fluid channel for continuous conversion of the formation into feedstock, injection unit for passing nutrient fluid through the underground bioreactor into the aboveground bioreactor, and extraction unit for withdrawing methane from the aboveground bioreactor; and    (2) method (M2) for forming subsurface network of channels for passing fluid through a geological formation.