Here's some background information I stumbled across.
Once upon a time NM started dnsmasq in strict-order mode but this was
changed.
https://bugs.launchpad.net/ubuntu/+source/network-
manager/+bug/903854
This bug was mentioned in the discussion about domain name service
changes for Precise.
https://blueprints.launchpad.net/ubuntu/+spec/foundations-p-dns-
resolving
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https://bugs.launchpad.net/bugs/1003842
Title:
dnsmasq sometimes fails to resolve private names in networks with non-
equivalent nameservers
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