Quasi-static rule-based network models used to calculate capillary dominated multi-phase transport properties in porous media employ equilibrium fluid saturation distributions which assume that pores are fully filled with a single bulk fluid with other fluids present only as wetting and/ or spreading films. We show that for drainage dominated three-phase displacements in which a non-wetting fluid ( gas) displaces a trapped intermediate fluid ( residual oil) in the presence of a mobile wetting fluid ( water) this assumption distorts the dynamics of three-phase displacements and results in significant volume errors for the intermediate fluid and erroneous calculations of intermediate fluid residual saturations, relative permeabilities and recoveries. The volume errors are associated with the double drainage mechanism which is responsible for the mobilization of waterflood residual oil. A simple modi. cation of the double drainage mechanism is proposed which allows the presence of a relatively small number of partially filled pores and removes the oil volume errors..