Step 1: Adjust oven rack to lower middle position and heat oven to 325° F.
Step 2: Fry bacon in a large pot until bacon is mostly cooked and has released about 1/4 cup drippings.
Step 3: Remove the bacon from the pot and drain on paper towels and chop.
Step 4: Add the onions, chile pepper and chiles to the bacon drippings in the pot and sauté until very soft, about 15 minutes.
Step 5: Add the bacon back in and the beans and all remaining ingredients and bring to a simmer.
Step 6: Pour the beans into a 13 by 9 inch ovenproof dish.
Step 7: Bake until beans are bubbly and the sauce is the consistency of syrup, about 1 hour 45 minutes or longer.
Step 8: Let stand to thicken slightly and serve.
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