Montezuma Spanish Rice

1/4 cup vegetable oil
1 medium onion, chopped
1/2 green bell pepper, chopped
1 cup white rice, uncooked
1/2 pound ground beef
2 (8 ounce) cans tomato sauce
1 3/4 cups hot water
1 teaspoon salt
Dash of pepper
1/4 cup diced green chiles

Pour hot water over rice and let it stand for about 15 minutes.

Drain the rice and rinse it well in cold water. Shake the sieve and let the rice drain for a while. Shake the rice to remove any excess water.

Brown onion, bell pepper, rice and beef in oil. Add remaining ingredients. Mix well and bring to a boil. Cover tightly and simmer for 25 minute or until rice is tender.