Ubuntu 16.04 image does not have network access

I modified the ubuntu16.04 dockerfile:

# ch-test-scope: full
FROM ubuntu:16.04

RUN    apt-get update \
    && rm -rf /var/lib/apt/lists/*

removing the apt-get install bc line.

Running apt-get install bc in the container results in:

root@dawg:/# apt-get install bc
Reading package lists... Done
Building dependency tree
Reading state information... Done
E: Unable to locate package bc

It looks like something is broken. @j-ogas also noticed some odd behavior.