Capitol Hemp, the tiny earth-friendly store which opened just over two years ago in the basement of 519 H St., will close its doors on Sept. 12 after getting a six-week extension from Aug. 1 so that pending issues between the city and the owner’s lawyers could be resolved. The store sells everything from soap and lotion to art and clothing, all made from industrial hemp. The retailer’s Adams Morgan store will close next month as well. The agreement came after an October raid when the Metropolitan Police confiscated water pipes, claiming they broke paraphernalia laws.