Greetings,

It seems to me if you;

Make a smoke entity to be translucent, make it thin, and place it over a
thin brush with your ground texture. This should give you the rippling
effect. I’m not sure what you would use for the translucency, but the
answer may lie with the invisible player model in 'Garry’s Mod Hide and
Seek yard.' It has a very nice predator refracting effect.

Make your ground texture as reflective as possible with the vmt file.
Set up your cube map to show the proper reflective angle.

Adjust your rendering distance of the smoke entity and your ground brush
so that it only appears in the distance.

This is untested, but based on my experience may be suitable for your
needs and be resource efficient.

It is very interesting and Ill look into it myself, special effects are my
specialty. If I make a good working model Ill post the source and a
tutorial for you.

Good Luck hope this helps,
TheMegolith


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