The above instructions are spot on correct. You do "in fact" own interest in the royalty. Otherwise, you won't be paid for it.
The other way to get to it, is to select the Personal Income tab followed by "I'll choose what to work on".
Then scroll down to the Business Items section and elect to start/update Rental & Royalty Income (SCH E) and go from there. make sure you select the option to identify it as a royalty payment and not rental income (if the income is reported in box 2). Otherwise, your taxes will not be correct and you'll be asked questions that assume you have ownership of physical real estate, when you don't.
