Lee fired a four-under 67 in the opening round to sit in a share of 10th place, two shots behind American leader Bo van Pelt.
Lee had five birdies and a bogey in his round to be placed nicely heading into the second round and a good chance to be around for the weekend.
Fellow Kiwi Tim Wilkinson is in danger of missing the cut, however, after a one-over 72 leaving him in a tie for 73rd.
Meanwhile on the LPGA Tour, Lydia Ko is off the pace of the leaders in the first round of the Canadian Open.
Ko, looking to win her third straight title in Ontario, opened the tournament with a two-under 70 putting the 17-year-old tied for 34th.
South Korea's So yeon Ryu leads the tournament following a nine-under 63. Compatriot Na Yeon Choi is a shot back at eight-under.
