Hi Pamela,

I'm sorry to hear about your tree!

It's a bit tough to say from the photo, but based on what I can see I suspect you have either aphids or scale insects on the cones and it looks like some of the surrounding needles too--these insects are covered with waxy threads as a defense mechanism.  

Usually considered cosmetic only, they can cause damage to stressed trees with multiple years of heavy infestation.  You might consider cutting off the affected cones and destroying them; some insecticide options are also available (be sure to read and follow the label directions).  Because not all insects are responsive to the same products, it would be good to get a better ID before treating with chemicals if that's something you're interested in pursuing.  

If you could send a closer photo (or bring a cone to the extension office in Castle Rock) I could give you a firmer diagnosis.

I hope this is helpful!

Cordially,

John