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I know they have not been able to clear out the trees, etc., killed by the beetles.

Maybe under some jurisdictions, but up in the Arrowhead area, they've been cutting like crazy. The problem was that there was so much to cut. Southern Cal Edison said a few months ago that it would have to cut 350,000 trees just to protect its power lines through the area, and they had crews out selecting the trees. But the cost of removing a tree up there is anywhere from $300 to $3000 each, depending on size and location.

http://www.crestlinecourier-news.com/articles/2003/09/04/news/news5.txt

http://www.crestlinecourier-news.com/articles/2003/09/04/news/news2.txt

http://www.fire.ca.gov/ResourceManagement/so_cal_beetle_infest.asp

From the last of the above, the State's Resouce Management and Forestry department website:

"It is the responsibility of the property owner on private property to remove bark beetle infested trees, and due to the extreme fire danger, and the danger of falling trees, officials encourage prompt removal of dead standing trees. Don't wait to receive a notice requiring their removal. Contact a licensed contractor for tree removal and trimming. "

As I understand it the price of pine firewood has dropped to less then zero per cord in some of the SoCal mountain areas affected by the bark beetles and drought. That is, no one will buy it and you have to pay to have the wood taken away.

One property I know of is eight acres in the mountains near Julian, San Diego County, and has at least 50 dead Coulter Pines on it, mostly scattered around. The cost to have them removed is very high and so the owner will probably be leave them standing. Most of his absentee neighbors are apparently following the same strategy.