With the grill in the off position and cool, replace the left-side grate with the reservoir and fill with a handful (about 1 cup) of soaked wood chips. Place the reversible steam pan onto the water reservoir with the walls of the pan facing down.
Turn the control knob to the smoke setting and preheat the grill until smoke begins to form, 5–10 minutes.
Thoroughly coat the halibut fillets with salt and pepper.
Place the halibut skin-side down on the pan above the wood chips; close the lid.
Cook until beginning to flake and opaque throughout, 12 to 15 minutes.
Remove the halibut, transfer to a serving plate, and serve warm.