With your return open, search for 1099-misc, then select the Jump to 1099-misc link in the search results.
When you enter your 1099-MISC, enter the income in Box 2 - Royalties.
On the following screen, choose Investment income from property you own.
This includes natural resources extracted from your property by a third party who leases your property, as well as royalties from intellectual property that you didn't create yourself. This gets reported on Schedule E.
Once you've selected the proper classification, follow the onscreen instructions.
