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Fry bacon in a cast iron skillet on stovetop over medium heat. Stir the bacon around regularly to prevent burning.
Once the bacon is starting to brown, stir in the minced onion and pepper. Saute for a few minutes, or until the onion goes transparent. Remove from heat.
Add the drained navy beans and the remaining ingredients to the cast iron skillet. Stir very well to ensure that everything is well mixed and coated in the sauce.
Set smoker to 250F using wood chips of choice (cherry, apple, hickory and maple all work excellent for these beans).
Place the cast iron skillet full of beans in the smoker and smoke for 2 1/2 hours. Serve.