David Hearn has carded two straight rounds of 4-under 67 to take third place at 8-under-par 67. Matt McQuillan and Stephen Woodard are one shot further back at minus-7.
Scott opened with a birdie at the first, but tripped to a bogey at the very next hole. He came back to birdie the par-5 fourth at Derrick Golf and Winter Club.
He dropped in back-to-back birdies from the eighth to get to minus-8. Scott again dropped in consecutive birdies from the 13th. After a bogey at the par-4 16th, Scott regained the lead with a birdie at the 17th.
'I've played a lot more consistent and am not making nearly as many mistakes,' said Scott. 'The hard work I've been doing is starting to pay off for me, and it frees me up to play better golf out there. I'm very comfortable with my game right now.'
Higton ran off three straight birdies from the fourth to get to 7 under. After a birdie at the eighth, Higton drained consecutive birdies from the 10th to get to minus-10. He dropped strokes at the 12th and 16th, before a birdie at the last closed a round of 5-under 66.
Rob Oppenheim, Craig Scott and Tyler Erickson share sixth place at 6-under-par 136.
Kent Fukushima, the first-round leader, struggled to a 2-over 73. He stands at 5-under-par 137 where he is joined by Cory Jones, Chris Locker, Matt Daniel, Nick Davey, Paul Devenport and Christopher Baryla.
Defending champion Rob Johnson carded a 3-under 68. He shares 21st place at 3-under-par 139.
The cut line fell at even-par 144 with 65 players advancing to the weekend.