Atwal struck five birdies but bogeyed twice and had one double bogey in a tournament being played on Stableford format. Atwal had just one birdie, five bogeys and one double in the first round.
Players receive eight points for double eagle, five for eagle, two for birdie, zero for par, minus-one for bogey and minus-three for double bogey or worse.
Andres Romero birdied his last four holes on Friday to take the second-round lead in the Reno-Tahoe Open with 22 points on a Sierra Nevada layout.
The conditions were tough with swirling and gusty winds at the 7,472-yard Montreux Golf Club.
Woodland, who started the day in second place with 14 points, had a chance to take the lead on his last hole Friday when his 90-yard approach to the par-four ninth rolled and glanced off the pin, but he missed the five-foot birdie putt coming back.
Stuart Appleby, Rod Pampling and Charlie Wi, who played his freshman year at Nevada, were three off the lead with 19 points, followed by Greg Chalmers, Chris Knost and Brian Harman at 18. David Toms was in a group with 17.
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