An object type of *OUTQ cannot be allocated.
Can you give us more information as to what you are trying to accomplish?
Then we can suggest a solution.
Some possibilities would be:
Changing authority on the *OUTQ
Having it in a library where you could allocate the *LIB.
And be aware that you cannot restrict a user who has *SPLCTL special authority from accessing any spooled files on the *OUTQ no matter how you authorize the *OUTQ.
Special authorities are intended to override any normal authorities. That’s what makes them “special”.