In Ubuntu 14.04 local domain addresses are not resolving properly. nslookup and dig commands work. This is because they use a different process to query DNS information. To fix the issue you need to modify /etc/nsswitch.conf
Replace:
hosts: files mdns4_minimal [NOTFOUND=return] dns mdns4
with:
hosts: files dns
By doep, dragouf, and nighthawk