Quite a few years back I bought some mesquite from a saw mill that swore they kiln dry everything. Label that BS. Anyway, I had the boards sitting around and when I finally found a project for them, there was the telltale saw dust on the floor.
Tony, I think there's a mis-assumption as to the scenario you've described. You can't necessarily blame the kiln for the infestation you subsequently experienced. After kiln drying, you allowed your lumber to sit around, I assume for a good while. Your infestation may have occurred during this sitting around period and not a continued infestation because of lack of kiln drying or lack of the kiln drying process.
On the other hand, the kiln may have done an appropriate job of kiln drying the lumber and it was THEY who allowed the lumber to sit around, before you purchased it. It may have been their sitting around period that facilitated the infestation, that you subsequently purchased.
Your statement kind of suggests that, once kiln dried, the bugs will not infest your lumber, hence the only way your lumber was infested was the result of the kiln not doing their drying job. Kiln drying does not prevent subsequent infestation. If that were the case, then assuming most wood in one's home has been kiln dried, then there would be little to no worry about bugs infesting wood inside one's home.
Not to argue or be rude, here, but some readers may draw a somewhat wrong conclusion about the happenings you described.
What's even worse than someone drawing the wrong conclusion is that you lost out, no matter what cause, on your good intentioned mesquite investment.
Sonny