Another disappointing 'putting' day for Lahiri meant he was unable to make any ground and only slide back over the last two at the PGA-sanctioned event at the Albany Golf Club.
Lahiri, who got a player exemption from the sponsor along with Bill Haas, has hit the ball and been fine till he reaches the greens. He was Tied-10th after the first and then tied 14th after Round 2.
After taking pars in the first three holes, Lahiri hit a bogey in the fourth hole that was par 4.
The 28-year-old player from Bengaluru then kept going even-par for the next eight holes from fifth to the 12th before hitting another bogey in the 13th.
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"I got a mud ball on fourth (meaning mud was stuck on the ball, but he could not lift to clean it because it was not on the greens) and that lead to an errant approach shot. It resulted in a bogey," said Lahiri, who had no birdies on the front stretch.
Meanwhile, Watson holed out with a seven-iron for eagle, made seven birdies and tied the course record with a nine-under 63 on Saturday to take a two-shot lead over Paul Casey.
Watson tied the record that had been set 10 minutes earlier by Casey, who had nine birdies on a clean card.
Watson was at 19-under 197, one short of the 54-hole tournament record set by World No.1 Jordan Spieth at Isleworth in Florida last year.
"We're all good players, don't get me wrong. We're all top 50 in the world. But with no wind, this golf course is a little bit easier to make birdies. Obviously 20-mile an hour winds, this golf course becomes a beast," said Watson.
Spieth though had an ordinary day at the greens as the defending champion carded a four-under 68 to be tied fifth alongwith Haas.
Tiger Woods, the tournament host, followed the final group through the front nine and occasionally gave his friend and TV reporter Notah Begay a lift.