Surprisingly, with so much deadwood on the slopes of Colorado, beetle kill wood is not very easy to find and the wood is not very cheap in comparison to the regular wood.

As you can see on the pictures, it has slightly blueish color because of the waves and the streaks across the boards. It might not be as duarable as the regular wood, but it is quite suitable for building fences. It is a dry wood. The advantage is that the gaps between the pickets will be smaller than in the regular cedar fence, which shrinks a little bit with time.

The great thing about using the beetle kill wood is saving the forest. Please inquire if you are interested. We've used beetle kill wood for decks, porches, fences, gates, and simple furniture such as shelves, boxes, flower and TV stands. It looks good, even though it requires some extra work. The higher the demand - the more the incentive to the mills and the lumber yards to produce more of a variety of beetle kill wood.

Links
http://www.ehow.com/list_6812876_dangers-made-pine-beetle_kill-wood_.html
http://www.westernloghomesupply.com/beetle-kill-pine.html