The Lincoln County War is on the verge of kicking off in a big way; Billy has joined Englishman John Tunstall in his commercial battle with Major Murphy and the House, but even bigger players lurk in the background and the stakes are high.
The del Toboscos fail to repay their debt, leading to an ambush by the 7 Rivers Gang; Billy vows that he and the Regulators will take over Lincoln and clear out the thugs.
Billy and the Regulators turn McSween's house into their HQ, and are supported by the Mexicans; a confrontation with the 7 Rivers Gang leads to a fusillade of bullets.
With Lincoln on lock down, Murphy's House celebrates what it regards as a victory over the Regulators; when a Regulators look-out shoots a soldier, the McSween house is set on fire.
Frustrated by Billy's ability to evade capture, Thomas Catron devises a scheme to lure Billy back for his arrest; The Regulators attack the jail while Billy, aided by Dulcinea, escapes once again.