During the encounter, Evans and his group were approached by Billy and his companions and, ultimately, Evans and his group were allowed to depart unscathed.
In July 1878, towards the end of that summer, the Regulators made their final stand. They had a well-planned strategy and gathered in significant numbers to ride into Lincoln and put an end to the war. It is debated if Tom was present for this event.
Upon arriving, they strategically positioned themselves throughout town and began to engage Dolan’s men. However, their efforts were soon interrupted by the military who claimed to be there to protect citizens. Unfortunately, the military was colluding with James Dolan, and as a result, Mcsween’s home was set ablaze. Despite the unfortunate incident, the men inside the house remained steadfast, loading up while saying their prayers. It was a tragic end to a long-standing conflict that disrupted the peace of the community.
One by one the men emptied out of the burning inferno. As everyone sprinted or zigzagged across the yard, Mr. Mcsween walked out to his death. Most agree this was the end of the Lincoln County War.
In the next couple months several Regulators found homes and jobs at Fort Sumner and settled in. For Tom Billy, and a few others, regular work was out. This may be because they were not ready to settle in yet there was still work to do, the score was not settled and they still had not yet been paid for fighting. The Regulators were owed, some were happy to just still be alive and moved on…others had not. Billy targeted Chisum for the money owed, Chisum gave them the run around and kept them waiting.

In the meantime, Regulators Tom, Billy, Henry Brown, John Middleton, possibly Jim French, Tiger Sam Smith and George Bowers raided Charles Fritz’s ranch and rode off with 15 horses and 150 head of cattle.  They drove the animals north up the Pecos to the Canadian river and continued East to Tascosa where they unloaded them. While in Tascosa, Tom was in an argument with a man while playing a Monte card game, reports suggest Billy prevented Tom from killing the man.

Some stories say Tom and Billy had delivered a large number of Chisum’s cattle to Tom’s Uncle John who was then living near Portales and disposed of them bringing them around $9,000. Other reports mention that the cattle were delivered to a Joe or James Cook, both likely relatives of Toms and were driven to Honeywell, Kansas and sold. (No evidence to support this one either)

The remaining members of the Regulators decided to part ways and pursue their individual paths. Tom, Billy, Doc Scurlock, Joe Bowers and Ygninio Salazar deliberated over their future in New Mexico and sent a letter to Evans inquiring whether the Dolan faction was pursuing peace or war. This was done in a professional manner and conveyed their sincere interest in avoiding conflicts while looking out for their own best interests.
The men received a reply for peace and to meet at the Lincoln plaza on the evening of February 18th 1879 one year after Tunstall’s murder. When the  men arrived at Lincoln Plaza they met up with the other faction made up of James Dolan, Jessie Evans, William Campbell, Edgar Waltz and Billy Matthews.After reaching an agreement the boys went to a saloon and poured some drinks in celebration when Hustin Chapman appeared. Chapman was the Widow Mrs Mcsween’s lawyer who was working overtime to get Dolan and his men put behind bars or under a rope. The liquored-up men on the Dolan side began taunting the one-armed fellow, Chapman. Tempers flared and Chapman was shot dead. Tom and pals backed away quietly and rode out.  The peace deal was broken.
Colonel Dudley of Fort Stanton became concerned for Dolan and sent Lieutenant Goodwin and a detachment of soldiers to Lincoln under the pretense, most likely to help sweep things under the rug before Governor Wallace and secret service agent Wild caught wind of Chapman’s murder. Goodwin understood what Dudley was trying to do and convinced Sheriff Kimbrell to go after Billy Tom and Salazar and even sent a small Detachment of soldiers with them to aid in arrests. Most likely the goal was to capture them and kill them to put the blame on them for killing Chapman before anybody else knew the actual details.

The posse had no luck finding Tom, Salazar or the Kid.
However Wallace did hear about it and hurried to Lincoln. Upon The Governor’s arrival he sent out requests to arrest the men involved, even offering a reward. Jesse Evans and William Campbell were caught and thrown into Fort Stanton and indicted on a murder charge, but after escaped.
Billy sent a letter to Governor Wallace at Lincoln requesting a meeting in exchange for immunity, he would testify to what he seen that night during the murder of Chapman. After the meeting with Wallace an agreement was made for Billy to testify. A staged arrest was set up on March 23rd at the Gutierrez farm about a mile south of San Patricio. (Any relations to the Gutierrez family in Ft. Sumner is not known) Sheriff Kimbrell received Tom, Doc and Billy and locked them in an attached outbuilding at Juan Patrons.
But Tom was not just along for the ride, Tom and Sam Smith were indicted on charges of stealing Fritz’s stock. Both pled not guilty by the governor’s amnesty proclamation and were discharged. However Tom stayed around to testify for a friend and was then indicted for perjury.  

Lawyer Ira Leonard sent a letter to Governor Wallace,
“I tell you governor, The district attorney here (Rynerson) is no friend of law enforcement. He is bent on going after the Kid. He proposes to destroy his evidence and influence and is bent on pushing him to the wall. He is a Dolan man and is defending him in every manner possible.”
Unfortunately after the Kid’s testimony it turned into a murder trial against him. When judge Bristol and district attorney Rynerson both Dolan sympathizers, took the lead of the circus, Billy’s trial for murder was set up for July and when the opportunity arrose, Tom, Billy and Doc made an easy escape and skinned out. As they rode for Fort Sumner they saw no hopes of an easy retirement in New Mexico and started making plans that would become a reign of terror. Except for Doc, who had enough and left New Mexico.

First they formed a new gang loosely known as “The Rustlers” and began by taking their frustrations out on Chisum, making off with about 120 of his cattle driving them to Alamogordo where they were sold to Colorado buyers. Billy and Tom probably stole 48 head of horse’s from the Mescalero Apaches in February of 1880 and 54 cattle from Texas owners at Los portales in May. A large number of horses were stolen from White Oaks in June. On November 15th Billy, Tom, Buck Edwards and Tom Pickett stole horses from Grezlachowski’s ranch. 

While Tom was possibly off meeting his cousin Thalis Cook. Billy and a few other boys were involved in a standoff with some law enforcement at the Greathouse ranch outside of White oaks. After a deputy was killed they met back up with Tom

Little did they know then, they had a new sheriff on their trail by the name of Pat Garrett, elected on November 7th 1880 with support of small and big cattle interests that were tired of Billy and Tom taking their stock.
A posse out of Texas was on Tom and the Kids trail when they ran into Garrett’s posse, joining forces, went into Fort Sumner.
The posse posted up at Fort Sumner. Garrett allegedly paid a Mexican one hundred dollars to take a message to Billy, to where he was hiding. It was to let him know the “Texans” had gone home, and that it was safe to return to Fort Sumner.

Jim East recalls; “Lon Chambers was on guard outside, our horses were in Pete Maxwell’s stable. Sheriff Garrett and 3 others were on a blanket playing poker. I had just laid down on my blanket in the corner, when Chambers burst in and said the Kid and his gang were coming into Sumner.”

The men took positions under the porch and other hidden areas. When Billy’s gang approached through the heavy fog, Garrett yelled for them to throw up their hands and at the same time, fired their guns. An eruption of gunfire lit up the area and they had hit one man and the others fled. Tom Folliard was shot and dying, the posse helped him down off his horse and took him in the house. Barney Mason is remembered for telling Tom to “take your medicine old boy.” East recalls; “I got Tom some water and gave it to him, he cussed at Garrett and died about 30 minutes later.”When posse members went through Tom’s saddle bags, they found a letter Tom had written to his grandmother telling her that he and Billy were coming to visit her in Texas.”
Tom, like his letter, would never make it .

Tom’s life was taken on December 19th 1880 and is  buried at the post cemetery at Fort Sumner next to his pals that would later join him, Charlie and Billy the Kid.