The longer the smoking continues, the more it permeates into finishes, walls, ceilings, floors, even insulation.

Nicotine is best removed by washing walls with TSP find at hardware store, DOG smell is one thing dog urine is another,, so determine if flooring is damaged and if removal is needed..

I have already removed all of the insulation which contained a good majority of the odor and will also remove any and all wood that it has permeated.  

You don't convince the tenant, she had unauthorized cats, and the cat pet caused the damages, are her expense,  You will never get the cat pee odor out, you may even have to get the sheetrock replaced about 2 feet up from the floors if the cat spray was that bad.after the sub floor is up, I would use Kilz and paint the joists before putting down new subfloor. and use kilz as primer before you do any painting.We flipped a cat pee house, had to remove the subfloors, and sheetrock for 2 feet from floor, the base molding, and door frames and doors the wood was so permeated with cat spray it was not an option to save.. we kilzed the entire area with this primer before painting.. 

It permeates their clothing, furniture, drapes, and carpet.

If the cleaning is to get nicotine off all the walls the yes, extra and also the odor will likely remain unless a primer designed to seal odors is used.

A clay soil doesn't allow water to permeate through it, it will run off, away from the house.  

Minimally, he is chain smoking marijuana every day, which permeates the entire building.I have verbage in my lease about illegal activities, but I frankly don't want to get into it with them about trying to prove my case.  

Dog and cat urine which permeated the sub-floor and required a complete rip out.

Make sure to wipe down the walls, trim and doors before you repaint so that you remove the layers of nicotine, otherwise your paint likely won't stick.