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Ostlund was chairman of the Campbell County Republican Party from 1961 to 1969. He then served for several years as a state Republican committeeman. In 1969, Governor Stanley K. Hathaway named Ostlund to the board of trustees of the University of Wyoming at Laramie.  During his term, UW developed its Fine Arts Center.<ref name=obit/>​

Ostlund was chairman of the Campbell County Republican Party from 1961 to 1969. He then served for several years as a state Republican committeeman. In 1969, Governor Stanley K. Hathaway named Ostlund to the board of trustees of the University of Wyoming at Laramie.  During his term, UW developed its Fine Arts Center.<ref name=obit/>​

In 1972, Ostlund unseated state Senator Richard A. Mader (1923–2001) of Gillette in the Republican [[primary]] to represent Campbell and neighboring Johnson County, which was the site of a notorious range war in the early 1890s. He won the  [[general election]] in the fall and was reelected in 1976. The 1970s were a time when Wyoming, and particularly Campbell County, were experiencing growth in mineral development. Ostlund, a [[conservative]] Republican, was chairman of the Senate Mines, Minerals and Industrial Development Committee and was involved in the development of the Wyoming Community Development Authority, the Coal Tax for Impact Assistance, and the School Foundation Program to finance capital facilities. Ostlund listed his most important accomplishment as the acquisition of the land for the "Camplex," the multi-activities center for Campbell County.<ref name=obit/>​

In 1972, Ostlund unseated state Senator Richard A. Mader (1923–2001) of Gillette in the Republican [[primary]] to represent Campbell and neighboring Johnson County, which was the site of a notorious range war in the early 1890s. He won the  [[general election]] in the fall and was reelected in 1976. The 1970s were a time when Wyoming and particularly Campbell County were experiencing growth in mineral development. Ostlund, a [[conservative]] Republican, was chairman of the Senate Mines, Minerals and Industrial Development Committee and was involved in the development of the Wyoming Community Development Authority, the Coal Tax for Impact Assistance, and the School Foundation Program to finance capital facilities. Ostlund listed his most important accomplishment as the acquisition of the land for the "Camplex," the multi-activities center for Campbell County.<ref name=obit/>​

In the spring of 1978, Ostlund resigned from the state Senate to run for governor. In the primary, he polled 40,251 votes (58.9 percent) to defeat Gus Fleischli, a Rawlins native who was in the [[petroleum]] business in Cheyenne, who received 24,824 ballots (36.4 percent). In a mostly Democratic year nationally, Ostlund was then defeated in the general election by Herschler: 67,595 votes (49.1 percent) to 69,972 (50.9 percent). Four years earlier as the GOP nominee, trucking executive and former State Senator Dick Jones of Cody in Park County received 56,645 (44.1 percent) to Herschler's 71,741 (55.9 percent). Ostlund hence ran 10,950 votes ahead of Jones, but Jones had faced voters in a more heavily Democratic year nationally.<ref>''Congressional Quarterly's Guide to U.S. Elections,'' p. 1538.</ref>

In the spring of 1978, Ostlund resigned from the state Senate to run for governor. In the primary, he polled 40,251 votes (58.9 percent) to defeat Gus Fleischli, a Rawlins native who was in the [[petroleum]] business in Cheyenne, who received 24,824 ballots (36.4 percent). In a mostly Democratic year nationally, Ostlund was then defeated in the general election by Herschler: 67,595 votes (49.1 percent) to 69,972 (50.9 percent). Four years earlier as the GOP nominee, trucking executive and former State Senator Dick Jones of Cody in Park County received 56,645 (44.1 percent) to Herschler's 71,741 (55.9 percent). Ostlund hence ran 10,950 votes ahead of Jones, but Jones had faced voters in a more heavily Democratic year nationally.<ref>''Congressional Quarterly's Guide to U.S. Elections,'' p. 1538.</ref>