This thing is on Critters of Jaggedpine faction.
When I killed it I got two faction messages:
Your faction standing with Critters of Jaggedpine could not possibly get any worse.
Your faction standing with Residents of Jaggedpine got worse.
I guess the faction hit with the critters is pretty big. Kill a couple and they will hate you! Now all I need is a way to get the faction back up.