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I always snip them if they paper lower than their dam/sire. The paper levels are a scale, there is somewhat overlap (a very high red can also be aga blue, as showed with your mare). So if they paper lower than their dam/sire they are probably a tiny bit worse, otherwise they would have shown the same paper level. Because even if a horse tests AGA parent, they can still be a bit better or a bit worse (as it is about as good as). So I snip if they paper lower, if they have the same paper level then I test them against their parents. If they are aga they mostly get the snip unless I really like them.

But, I am a big stable so I have to cull hard to keep my numbers down.

Like annismyrph said, if you like her and she has a good color your could always keep her and breed with her. And who knows, if you repeat the cross you might end up with a blue papered or a better than dam filly!

@Master Thank you for the insight. That actually helps me out. I've been trying to cull down and snip more.

Genetically she's only ok for me. I have better papered mares from both sire and dam that are more genetically what i want. This was the first time on this cross. Usually it's pretty clear cut for me if I snip or not, this scenario is a first for me.

I'm hoping to get a superior to dam from the dam since she is one of my favorite mares and i want one to replace her when she ages out.

I'm with Taliesin here. If in doubt, get the snippers.