Clint Jensen and Connor Robbins share second place at 8-under-par 136. Brad Fritsch, Jason Allred, Chris Parra and first-round leader Craig Taylor are one stroke further back at minus-7.
Sutterfield opened his round on the back nine at Gorge Vale Golf Club with four straight pars. He then birdied the 14th and 16th, both par-3s, to move to 6 under.
He notched three consecutive pars around the turn. Sutterfield then caught fire. He birdied the second and third to get to minus-8, and he wasn't done there.
Sutterfield birdied the fourth and fifth for the second straight round to jump into the lead at 10 under. He parred out to cap a bogey-free round.
'I've been confident with the putter all season long, and that seems to be taking a lot of pressure off the rest of my game,' said Sutterfield, who won the season-opening Barton Creek Classic in a playoff over Mario Tiziani. 'It seemed like I didn't miss any 5- or 6-footers today, and made a couple of big par saves to keep the round going.'
Tiziani posted a 4-under 68 to move to 6-under-par 138. He shares eighth place with Ryan Ellis, Philip Jonas and Darren Griff.
Christopher Baryla, Lee Curry, Kyle Kovacs, Andy Matthews, Will Moore, Billy Noon, Ben Ferguson, Chris Greenwood and Adam Short are one stroke further back at minus-5.
The cut fell at 1-under-par 143 with 64 players moving on to the final two rounds. Among those missing the cut were Jason Higton (144), Nick Davey (145), and Derek Gillespie (146).