The River Ure is a river in North Yorkshire, England, approximately 74 mi long from its source to the point where it changes name to the River Ouse. It is the principal river of Wensleydale, which is the only one of the major Dales now named after a village rather than its river. The old name for the valley was Yoredale after the river that runs through it.
The river is located in a town with the abbreviation NY
North yorkshire abbreviated is NY, therefor making it correct. I think the model is confused by abbreviations 
( z0 be-located-at :ARG1 ( z1 river ) :ARG2 ( z2 town :prep-with ( z3 abbreviation :mod ( z4 string-entity :value "NY" ) ) ) )
(z0 / be-located-at-91
    :ARG1 (z1 / river)
    :ARG2 (z2 / town
              :prep-with (z3 / abbreviation
                             :mod (z4 / string-entity
                                      :value "NY"))))
The river is located in a town with the abbreviation NY
z0 :ARG1 z1
z0 :ARG2 z2
z3 :mod z4
z2 :prep-with z3
z4 :value 0