Question / Help Encoding Error but low CPU ussage?

Hi all. So I'm trying to stream @720p 60fps and it's telling me it's having an issue encoding, even though it's only using 40% of the CPU? I don't get it. My system should be able to handle that with no issue (i7 4790, GTX 970, 8GB RAM). I'm streaming with the Elgato HD60 pro (64 bit versions of both the elgato software and OBS), my Logitech C920 and a standard overlay. Nothing crazy.

The bitrate is 3500, resolution is 720p, 60fps, veryfast CPU preset. This is fairly standard stuff I'm trying to do with a PC that shouldn't be having an issue with it. If anyone has any ideas that would be greatly appreciated. Thank you for your time.

EDIT: Here is the log file https://gist.github.com/80f7ade6f056f15221dc
 
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