Nicor Inc.
                                                                 Form 10-K/A
                                                                 Exhibit 99.04

                   REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To the Birdsall, Inc. Retirement
  Savings Plan Committee:

We have audited the accompanying statements of net assets available for benefits
of the Birdsall, Inc. Retirement Savings Plan (the Plan) as of December 31, 1999
and 1998,  and the related  statements  of changes in net assets  available  for
benefits  for  the  years  then  ended.  These  financial   statements  and  the
supplemental  schedules  referred to below are the  responsibility of the Plan's
management.  Our  responsibility  is to express  an  opinion on these  financial
statements and supplemental schedules based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable  assurance about whether the financial  statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We believe  that our audits  provide a  reasonable  basis for our
opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the net assets available for benefits of the Plan as of
December 31, 1999 and 1998, and the changes in net assets available for benefits
for the years then ended in  conformity  with  accounting  principles  generally
accepted in the United States.

Our audits were performed for the purpose of forming an opinion on the financial
statements  taken as a whole.  The  supplemental  schedules  of assets  held for
investment  purposes and reportable  transactions  are presented for purposes of
additional analysis and are not a required part of the financial  statements but
are  supplementary  information  required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure  under the Employee  Retirement  Income
Security Act of 1974.  The  supplemental  schedules  have been  subjected to the
auditing procedures applied in the audits of the basic financial statements and,
in our opinion,  are fairly  stated in all material  respects in relation to the
basic financial statements taken as a whole.


ARTHUR ANDERSEN LLP
Arthur Andersen LLP



West Palm Beach, Florida,
    June 23, 2000.




             BIRDSALL, INC. RETIREMENT SAVINGS PLAN
        STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
                AS OF DECEMBER 31, 1999 AND 1998

                                                  December 31
                                         -----------------------------
                                             1999             1998
                                         ------------      ------------

Assets:
Cash and cash equivalents               $    993,927      $    615,875

Investments                               34,093,114        29,590,961

Receivables
  Employer                                   275,800           438,734
  Participants                               287,834           248,869
                                        ------------      ------------
                                             563,634           687,603
                                        ------------      ------------

Total Assets                              35,650,675        30,894,439
                                        ------------      ------------

Liabilities:
Forfeitures                                  235,840           301,465
Other                                          9,327            31,321
                                        ------------      ------------

Total Liabilities                            245,167           332,786
                                        ------------      ------------

Net assets available for benefits       $ 35,405,508      $ 30,561,653
                                        ============      ============



The accompanying notes are an integral part of these statements.


                                  -2-



             BIRDSALL, INC. RETIREMENT SAVINGS PLAN
   STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
         FOR THE YEARS ENDED DECEMBER 31, 1999 AND 1998

                                           Year ended December 31
                                        ----------------------------
                                            1999              1998
                                        -------------     ------------

Additions
Investment income:
  Dividend income                      $      68,589     $     13,098
  Interest income                            642,991          689,786
  Net appreciation/(depreciation) in
    market value of Nicor Inc.
    common stock                            (285,619)           8,473
  Net investment gain from common/
    collective trusts                      3,336,356        3,700,955
  Net investment gain/(loss) from
    registered investment company            199,910          (23,055)
                                        ------------     ------------
                                           3,962,227        4,389,257

Contributions:
  Participant                              2,010,097        2,018,249
  Employer                                 1,348,949        1,259,426
                                        ------------     ------------
                                           3,359,046        3,277,675
                                        ------------     ------------

Total additions                            7,321,273        7,666,932
                                        ------------     ------------

Deductions
Distributions to participants              2,441,145        2,245,827
Administrative expenses and other             36,273           81,887
                                        ------------     ------------

Total deductions                           2,477,418        2,327,714
                                        ------------     ------------

Net increase                               4,843,855        5,339,218

Net assets available for benefits
  at beginning of year                    30,561,653       25,222,435
                                        ------------      ------------

Net assets available for benefits
  at end of year                        $ 35,405,508     $ 30,561,653
                                        ============     ============



The accompanying notes are an integral part of this statement.


                                     -3-





                    Birdsall, Inc. Retirement Savings Plan
                      Notes to the Financial Statements

PLAN INFORMATION

The following description of the Birdsall, Inc. Retirement Savings Plan provides
only general  information.  Participants  should refer to the Plan agreement for
more detailed information.

The Plan. Birdsall, Inc. (the Company) established the Tropical Shipping Savings
Investment Plan (the Savings  Investment  Plan) on September 1, 1983, to provide
its eligible  employees with an opportunity  to accumulate  retirement  savings.
Effective  January 1, 1990,  the Birdsall,  Inc.  Profit Sharing Plan was merged
into  the  Savings  Investment  Plan and  re-designated  as the  Birdsall,  Inc.
Retirement  Savings  Plan  (the  Plan).  The  funds  of the  Plan  are  held for
safekeeping and investment by the Birdsall,  Inc.  Retirement Savings Plan Trust
(the Trust).  The Plan is subject to the  provisions of the Employee  Retirement
Income Security Act of 1974 (ERISA).

Plan  administration.   Authority  to  control  and  manage  the  operation  and
administration  of the Plan is vested in a committee  appointed  by the Board of
Directors of the  Company.  Under the terms of a trust  agreement,  the Northern
Trust  Company  acts as trustee for the Trust and holds the  investments  of the
Plan.  The Northern  Trust Company also acts as  investment  manager for certain
investments of the Plan.  Administrative  expenses  associated with operation of
the Plan are paid from Plan assets.

Contributions.  The participant may elect to make, by payroll deduction,  either
tax-deferred or after-tax  contributions,  or any  combination  thereof that are
partially matched by the Company.  The Company also pays an annual discretionary
lump sum contribution allocated equally to eligible  participants.  In addition,
the Plan accepts certain rollovers.  Participants direct the investment of their
contributions into various investment options offered by the Plan.

Employee  contributions include amounts in excess of maximum contribution levels
for certain participants.  Excess contributions are refunded to participants.  A
liability  for  excess  contributions  payable of $9,327  and  $16,881  has been
reflected in the statements of net assets  available for benefits as of December
31, 1999 and 1998, respectively.

Participant  loans.  Participants may borrow a minimum of $1,000 up to a maximum
equal to the lesser of $50,000 or 50 percent of their  vested  account  balance.
Loans are repayable  through  payroll  deductions  over periods ranging from one
year to five years, and are secured by the balance in the participant's account.
The interest  rate is based on the Northern  Trust prime rate plus 1 percent and
is fixed over the life of the loan.  The average  interest rate for  outstanding
participant  loans for the years ended  December 31, 1999 and 1998, was 8.83 and
9.4 percent, respectively.

Vesting and forfeitures.  The  participant's  contributions and earnings thereon
are immediately  vested.  The Company's  contributions  and earnings thereon are
vested  after  the  participant's  completion  of five  years  of  service,  the
participant's  death  while  employed  by  the  Company  or  retirement.  If the
participant's  interest in the Company's  contributions  and earnings thereon is
not vested, such interest will be forfeited if the participant's employment with
the Company or an affiliate is terminated and the  participant is not reemployed
within five years by the Company or an  affiliate.  Any amounts  forfeited  by a
participant  are  applied to reduce the  amount of the  Company's  contributions
under the Plan.

Suspensions and withdrawals.  The participant may suspend contributions and will
not cease to be a participant during the suspension period.


                                  -4-


                    Birdsall, Inc. Retirement Savings Plan
                Notes to the Financial Statements (Continued)

The participant may elect,  under certain  conditions,  to withdraw  participant
contributions  and earnings  thereon prior to  termination  of  employment.  The
Company's  matching  contributions  and earnings thereon will not be distributed
until the vested  participant's  attainment of age 59-1/2 or employment has been
terminated.

Plan  termination.  The Company expects to continue the Plan  indefinitely,  but
reserves  the  right to  amend or  discontinue  it at any  time  subject  to the
provisions of ERISA. In the event of plan termination,  participants will become
fully vested in their account balances.


<PAGE>



ACCOUNTING POLICIES

Investment  valuation.  The  Plan  states  its  investment  in the  Trust at the
underlying value of the investments of the Trust as follows:

Group  annuity  contracts  are  recorded  at  contract  value.   Contract  value
represents  contributions made plus interest at the various contract rates, less
Plan withdrawals and administrative  expenses. The aggregate market value of the
group  annuity  contracts  at December 31, 1999 and 1998  approximated  contract
value. Estimated market value is based on a variety of factors, such as contract
terms,  interest rate, maturity date and credit worthiness of the issue. For the
years ended December 31, 1999 and 1998, the average return was approximately 6.5
and 6.3 percent, respectively.

The market value for Nicor Inc.  common  stock is based on the closing  price on
the New York Stock Exchange Composite Tape.

The market  value of the units of the  common/collective  trusts and  registered
investment  companies are determined based on the underlying market value of the
investments of the funds.

Use of estimates. The preparation of financial statements requires management to
make  estimates  that affect the reported  amounts.  Actual results could differ
from those estimates.

Reclassifications.  Certain  reclassifications  were made to  conform  the prior
year's financial statements to the current year's presentation.

INVESTMENTS

Balances at December 31 are as follows:
                                             1999                 1998
                                         ------------        ------------

Group annuity contracts                  $  9,685,741        $  9,911,891
Common/collective trusts*                  20,107,686          17,802,982
Registered investment companies               966,624             727,756
Nicor Inc. common stock*                    1,459,000             377,431
Interest bearing cash*                      1,874,063             770,901
                                         ------------        ------------

                                         $ 34,093,114        $ 29,590,961
                                         ============        ============

* Includes Party-in-Interest Investment.


                                   -5-


                    Birdsall, Inc. Retirement Savings Plan
                Notes to the Financial Statements (Concluded)

The fair value of fund  investments  that represent 5% or more of the Plan's net
assets are as follows:

                                              1999              1998
                                          ------------      ------------

John Hancock Financial Services group
annuity contract                          $  2,748,654      $  3,557,620
Providian Capital Management group
annuity contract                             2,149,074         2,692,409
Travelers group annuity contract             1,778,111                 0
Allstate Life Insurance group annuity
  contract                                   1,952,013         1,988,703
Interest bearing cash*                       1,874,063           770,901
Collective stock index fund*                17,429,908        15,350,931
Collective aggregate bond index fund*        1,949,751         1,890,341


* Includes Party-in-Interest Investment.


INCOME TAXES

The Internal Revenue Service has determined and informed the Company by a letter
dated  January 23, 1997,  that the Plan is qualified  and the Trust  established
under the Plan is tax exempt under Section  401(a) of the Internal  Revenue Code
(the Code).  The Plan's  management  believes  that the Plan and  related  Trust
continue to be designed and operated in compliance with the  requirements of the
Code.


RECONCILIATION TO FORM 5500

At December 31, 1999 and 1998,  the Plan had $80,908 and $47,114,  respectively,
of pending participant  distributions.  Pending  distributions are recorded as a
liability  in the  Plan's  Form  5500;  however,  they  are  not  recognized  as
liabilities in the accompanying  financial  statements.  These distributions are
reflected in the statement of changes in net assets  available for benefits when
actually paid.

The Plan  presents  in the  statements  of changes in net assets  available  for
benefits  the  net  appreciation   (depreciation)  in  the  fair  value  of  its
investments  which  consists of the realized  gains  (losses) and the unrealized
appreciation (depreciation) on those investments.



                                   -6-

<TABLE>


                                             BIRDSALL, INC. RETIREMENT SAVINGS PLAN
                            Schedule H, Part IV, Line 4i - Schedule of Assets Held for Investment Purposes
                                                        December 31, 1999
<CAPTION>

                                           Description of investment including maturity
       Identity of issue, borrower           date, rate of interest, collateral, par
           or similar party                           or maturity value                      Cost         Current Value
---------------------------------------------------------------------------------------------------------------------------------
 (a)              (b)                                         (c)                             (d)             (e)

<S>                                       <C>                                             <C>              <C>
     John Hancock Financial Services      Group annuity contract: due March 2002; 6.37%   $ 2,748,654      $ 2,748,654

     Providian Capital Management         Group annuity contract: due March 2002; 6.44%     2,149,074        2,149,074

     Travelers                            Group annuity contract: due March 2004; 6.14%     1,778,111        1,778,111

     Allstate Life Insurance Company      Group annuity contract: due March 2003; 6.22%     1,952,013        1,952,013

     Life of Virginia Insurance Company   Group annuity contract: due March 2000; 7.17%       589,479          589,479

     Transamerica Asset Management        Group annuity contract: due April 2002; 6.87%       468,410          468,410

 (A) The Northern Trust Company           Short-term investment fund                            (B)          1,874,063

 (A) The Northern Trust Company           Collective stock index fund                           (B)         17,429,908

 (A) The Northern Trust Company           Collective aggregate bond index fund                  (B)          1,949,751

 (A) The Northern Trust Company           Benchmark international equity index fund             (B)            455,853

 (A) The Northern Trust Company           Benchmark small company index fund                    (B)            272,174

 (A) DFA Investment Dimensions Group Inc. Dimensional inv. group 6-10 inst. portfolio           (B)            966,624

 (A) Nicor Inc.                           Common stock at $2.50 par value                       (B)          1,459,000

 (A) Participant Notes Receivable         Participant loans earning interest 8.75%-9.50%        (B)            278,028


 (A) Denotes party-in-interest investment
 (B) Historical cost information could not be provided by the custodian.
</TABLE>


                                               -7-

<TABLE>


                                              BIRDSALL, INC. RETIREMENT SAVINGS PLAN
                              Schedule H, Part IV, Line 4j - Schedule of Reportable Transactions
                                                      December 31, 1999

<CAPTION>

                           Description of asset                                  Expense
                           (include interest rate                                incurred                Current value
        Identity of         and maturity in case    Purchase    Selling   Lease    with        Cost       of asset on     Net gain
       party involved          of a loan)             price       price   rental  trans.    of asset      trans. date     or (loss)
-----------------------------------------------------------------------------------------------------------------------------------
            (a)                   (b)                  (c)         (d)     (e)     (f)          (g)             (h)          (i)

Category A - a single transaction in excess of 5% of plan assets:


<S>                                             <C>          <C>                          <C>              <C>
Collective Short Term Investment                 $ 2,521,358                              $ 2,521,358      $ 2,521,358

Collective Short Term Investment                              $ 1,614,594                 $ 1,614,594      $ 1,614,594

Travelers Insurance Company                      $ 1,698,300                              $ 1,698,300      $ 1,698,300


Category C - a series of transactions which amount in the aggregate to more than 5% of the current value of plan assets:


The Northern Trust Co. Collective S.T. Inv. Fd   $18,342,168  $16,874,723
                       Number of transactions            256          235

Travelers Insurance Co Group annuity contract    $ 1,778,111
                       Number of transactions             12

</TABLE>